What to expect amid hairstyle rumors, HBO Max renamed
Check out Warner Bros. WBD) to report first-quarter results since the $43 billion merger as the company battles new reports about the future of streaming service HBO Max.
Here’s what Wall Street expects, according to Bloomberg Consensus estimates:
he won: $11.91 billion expected
characteristic. Earnings per share (EPS): $0.08 expected
Total number of DTC subscribers: 1.65 million net adds expected
Analysts expect a chaotic quarter for the broadcast conglomerate as it strives to merge the two companies, while cutting costs to improve profitability.
Forecasts call for a profit of $300 million in 2022, while macroeconomic headwinds could hurt advertising revenue – a long-term risk for media companies at all levels.
However, consensus estimates call for US advertising to grow 2.4% in the second quarter, helped by Turner Networks.
On the earnings call, investors will want clarity on the platform’s direct-to-consumer strategy, as well as the fate of HBO Max, which multiple reports say hangs in the balance.
The company plans to lay off 70% of its development work, according to The Wrap, which was quoted by “numerous insiders.”
Sources told the outlet that CEO David Zaslav, known for his cost-cutting leadership style, will announce a major restructuring of HBO Max and Discovery+ either during the earnings release or shortly thereafter.
The Wrap explained that the move “will result in a significant layoff from HBO Max and a significant number of executives and employees to reduce layoffs with HBO and its combined streaming service with Discovery+.”
The source claims that there will also be a narrower line between written and unwritten content.
Warner Bros. Discovery has previously said it plans to cut costs by $3 billion over the next two years, spreading those savings over streaming content.
At the time, questions arose as to where the money came from – the layoffs could be the start of this venture, although critics were quick to point to CEO David Zaslav’s exorbitant salary.
According to regulatory filings, Zaslav’s compensation package for 2021 — which runs through the end of 2027 — jumped to $246 million, which is significantly higher than in 2020 ($37.7 million). dollars) and 2019 ($45.8 million).
Earlier Wednesday, the studio confirmed that two films scheduled to air on HBO Max, “Batgirl” starring “In the Heights” star Leslie Grace, as well as “Scoop: Holiday Hunt,” have been pulled.
Warner Bros. did not respond. Immediately asked Yahoo Finance to comment on the layoff reports or its decision to pull these two films, but provided a statement to CNN that it owns.
“The decision not to release ‘Batgirl’ reflects the strategic shift in our leadership as it relates to the DC Universe and HBO Max,” a Warner Bros. spokesperson said. to the network.
“Leslie Grace is an incredibly talented actress and this decision does not reflect her performance,” the statement continued. “We are so grateful to the creators of ‘Batgirl’ and ‘Scoob! The Holiday Haunt films and their cast and hope to collaborate with everyone again in the near future.
The DC Comics movie was nearing completion, and the AI studio cost between $70 million and $90 million to produce.
Ahead of Thursday’s results, the stock was trading higher, up 4% by midday.
Alexandra is the senior entertainment and dining correspondent at Yahoo Finance. Follow her on Twitter aliecanal8193 And email it to [email protected]
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